The Managing Process of a Restaurant


Explain The managing process of a restaurant.


The managing process of a restaurant involves careful balancing consideration that enable a business to fulfill orders profitably and promptly. As Lee and Hing (2012) stated that there are various internal and external factors related with the business operation of a business chain. Internal factors are related with staffing and inventory related issues that can help smooth operation of a restaurant (Sani & Siow, 2014).  The external factors are such as the position of a restaurant and the constraints and the benefits that the restaurant can gather from it (Amit & Zott, 2012). The external market conditions include factors such as struggling or healthy condition of economy that affect the business performance of a restaurant.  There are various economic factors such as economic downturns; merger and acquisition and commodity prices have also impact on the business operation of a restaurant. In this study, an investigation has been done on the aspects affecting the restaurant business in Sydney.

 Problem Statement

Fast food industry is one of the fastest growing industries in the world (Kotas, 2014). Due to the increase of job pressure, peoples are becoming more addicted towards fast foods (Fitzsimmons & Maurer, 2013). However, with the increase of market competition, it has become highly important for a restaurant chain to take care of every aspect related with business. There some major challenges that a restaurant has to face in Sydney. They are such as human resource related issues, change of government regulations and economic fluctuation (Läikkö-Roto & Nevas, 2014). In Sydney, it is hard to find skilled and talented employees who are suitable for restaurant business (Canny, 2014). It is tough for a restaurant management to find out skilled waiter or cooks. The lack of knowledge of employees has server impact on the sustainable performance of hotels in Sydney (Wellard, Glasson & Chapman, 2012). It has been found that there are more than 2,000 peoples of Sydney are employed in different restaurants. Only 7% of those employees are skilled (Amit & Zott, 2012). The industry is facing significant shortage of cooks, chefs, managers and cooks.  On the other hand, it is in Australia, laws related food standard is changing rapidly.  Hence, it has become a challenge for a restaurant business chain to comply with all the food standards.  The Australian government also has to make some amendments in their taxation system. Presently the average tax rate is 3.8%. Hence, a restaurant also needs to take care of the tax related issues as well.           

Research objectives and research questions

Research objectives 

To identify the factors affecting business operation of a restaurant chain in  Sydney

To scrutinize the present business practices of restaurant industry of Sydney

To analyze the impact of these factors on the business operation of restaurant

Research questions 

What are the factors that affect the business operation of a restaurant chain in Sydney?

What are the effective business practices that the restaurants of Sydney have taken?

 What are the impacts of these factors on the business performance of a restaurant?

Justification of the project

It has been found that many peoples who have opened their own restaurants don’t have full understanding about various business aspects. They think that focusing on operational functions in their restaurants is good enough to develop a profitable foodservice enterprise (Tsai & Lu, 2012). A restaurant has to face various internal and external issues that have affect on their business performance. They are such as employee skills and location of the restaurant. This project will help to understand those factors that affect the business operation of a restaurant located in Sydney. The Australian government has made some changes in the rules and regulations related with food and safety. They are some changes have been made in the taxation laws, that a restaurant a company needs to take care. Moreover, it is tough for a restaurant to find out skilled employees in Sydney. Hence, conducting this project will help to analyze aspects that have impact on the restaurant business in Sydney.           

5. Expected research outcome

Effective completion of this research work will help to find out different internal and external aspects of business that affect business performance of a restaurant in Sydney. They are such as human resource management, economic fluctuations, changes of regulations related with taxation and food safety. It will also be analyzed how these aspects have affected the business performance of restaurant industry.    

 Conceptual framework and research hypothesis

Before looking to start a restaurant in the city of Sydney, some major aspects need to be taken care of. As Tsai and Lu (2012) stated that a restaurant chain must has to comply with two legal frameworks. There are certain rules and regulations have been developed by the Australian government to control the nature of building, in which a restaurant can operate. It is known as Building and planning laws.  Secondly, food safety and hygiene related laws help to govern the condition in which food should be prepared and sold (Amit & Zott, 2012). The Australian food governance council has combined all these requirements into one single form and named it as “Application for development for food and drink premises.”  Before starting a restaurant business in Sydney, a company needs to submit this form to the Australian food governance council. Depending on the certification of the council, a company is able to open a restaurant business in Sydney.

It has been found that there are various internal and externals aspects of business that have impact on the performance of a restaurant. They are such as personnel, legal factors, corporate management, business climate and human resource management. All these aspects and their impact on the restaurant chain in Sydney have been discussed in this section.  


As Wellard Glasson and Chapman (2012) stated that, interpersonal factors have give rise to variety of challenges and issues for the managers of a restaurant. It has been found that, most of the restaurants tend to pay lower wages to the employees (Canny, 2014). For this reason the turnover rate of food industry is high. Moreover, it has been found that there is a lack of experience and skill has been found in employees of restaurants. It has severely affected the performance of restaurant business chain.  In Sydney only 7% employees of restaurant have appropriate training.  There are various ways in which managers of restaurant can motivate their employees. Taking care of their needs, treating them with respect and providing employees appropriate training so that they can learn new skills.   

Legal factors

There are various laws and regulations have been developed by government of a country to improve the standard of food quality. The government Australia and New Zealand have developed a standard body for food safety named as Food Standards Australia New Zealand (FSANZ) (Kotas, 2014).  This agency develops standards for foods products such as meats, dairy and beverage products in accordance to the Food Standards Australia New Zealand Act 1991 (Canny, 2014). The Australian government also has make changes related with the taxation. Presently the tax rate implemented on all the food products of Australia is 3.8% (Läikkö-Roto & Nevas, 2014). A restaurant chain has to take care of all these legal factors to become successful in Sydney.     

 Corporate management

A restaurant must have an appropriate management structure to monitor all the business operations. Management needs to focus on two major issues such as customer service and human resource management (Sani & Siow, 2014). A restaurant needs develop efficient customer service so that it can meet the demand and needs of consumers. A company needs to develop a human resource team to hire skilled employees. They need to provide training to all the employees so that they can learn new skills.     

Business climate

A restaurant chain must develop healthy business climate in order to attract more customers towards them (Lee & Hing, 2012). For example, a restaurant needs to develop health eating campaign in the heart of Sydney. It needs to provide free sample and offers to the customers to increase brand reputation of the restaurant.      

 Human resource management   

One of the major issues that restaurant business of Sydney has to face is related with human resource management (Kotas, 2014).  It has been found that there are more than 2000 peoples are presently employed in different restaurants of Sydney. However, only 7% of them have adequate skills. Hence, a restaurant chain needs to develop a human resource management team so that they can hire experience and trained employees.  They need to give training to the employees so that they can learn new skills.  

 Research methodology

In order to conduct this research work in appropriate manner deductive research approach will be used along with descriptive research design. The major benefit of using deductive approach is that this approach of research has the aim to test existing theories. It begins with development of research hypothesis (Leening et al., 2012).  As Aubinet Vesala and Papale (2012) stated that deductive research approach is mainly concerned with developing hypothesis depending on the existing theory. It also helps to develop appropriate research strategy to test the hypothesis. Descriptive research design is used for to depict participants in appropriate manner. There are there are three major ways in which descriptive research design can be used in research work. They are such as survey, case study and interview (Englander, 2012). Positivism research philosophy is most suited for this research work as it depends on real facts and experiences.  

There are two major ways in which data can be collected for a research work. They are such as quantitative data collection method and qualitative data collection method (Zikmund et al., 2012). With the help of quantitative data collection method, huge amount of data can be collected from a mass population. On the other hand, with the help of qualitative data collection method, in-depth data can be collected from those persons who have adequate knowledge about the topic. Quantitative data can be gathered with the help of survey analysis (Sani & Siow, 2014). Survey questionnaires are given to respondents, where they have to give their answers for all close-ended questions. On the contrary, in order to gather qualitative data, interview needs to be taken from individuals who have ample knowledge about the research topic. In order to understand the impact of various aspects in restaurant, qualitative data collection method will be used. For this research work, interview will be taken from managers of different restaurant chains of Sydney.       

Organization of the study

There are five major chapters will be discussed in this study. They are discussed below:


In the first chapter research questions and objectives have been given along with problem statement and background of this study. The rationale behind selecting this research topic has also been given in this section.  

Reference list

Alvesson, M., & Sandberg, J. (2013). Constructing Research Questions. London: SAGE Publications.

Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3), pp.41-43

Aubinet, M., Vesala, T., & Papale, D. (2012). Eddy covariance: a practical guide to measurement and data analysis. Springer Science & Business Media.

Canny, I. U. (2014). Measuring the Mediating Role of Dining Experience Attributes on Customer Satisfaction and Its Impact on Behavioral Intentions of Casual Dining Restaurant in Jakarta. International Journal of Innovation, Management and Technology, 5(1), pp.25-35.

Chandra, S., & Sharma, M. (2013). Research methodology. Oxford: Alpha Science International Ltd.

Englander, M. (2012). The interview: data collection in descriptive phenomenological human scientific research*. Journal of Phenomenological Psychology, 43(1), pp.13-35.

Fitzsimmons, J. A., & Maurer, G. B. (2013). A walk-through audit to improve restaurant performance. The Cornell Hotel and Restaurant Administration Quarterly, 31(4), pp.94-99.

Kotas, R. (2014). Management accounting for hotels and restaurants. Routledge.

Läikkö-Roto, T., & Nevas, M. (2014). Restaurant business operators’ knowledge of food hygiene and their attitudes toward official food control affect the hygiene in their restaurants. Food control, 43, pp.65-73.

Lee, Y. L., & Hing, N. (2012). Measuring quality in restaurant operations: an application of the SERVQUAL instrument. International Journal of Hospitality Management, 14(3), pp.293-310.

Leening, M. J., Kavousi, M., Heeringa, J., van Rooij, F. J., Verkroost-van Heemst, J., Deckers, J. W., … & Witteman, J. C. (2012). Methods of data collection and definitions of cardiac outcomes in the Rotterdam Study.European journal of epidemiology, 27(3), pp.173-185.

Patton, M. Q. (2012). Qualitative evaluation and research methods . SAGE Publications, inc.

Sani, N. A., & Siow, O. N. (2014). Knowledge, attitudes and practices of food handlers on food safety in food service operations at the Universiti Kebangsaan Malaysia. Food Control, 37, pp.210-217.

Tsai, C. T. S., & Lu, P. H. (2012). Authentic dining experiences in ethnic theme restaurants. International Journal of Hospitality Management, 31(1), pp.304-306.

Wellard, L., Glasson, C., & Chapman, K. (2012). Sales of healthy choices at fast food restaurants in Australia. Health Promotion Journal of Australia,23(1), pp.37-41.

Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2012). Business research methods. Cengage Learning.

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